Bertha does not expect any unforseen events but holds some of her savings as currency and coins placed in her sewing basket. This is an example of
A. precautionary demand for money.
B. asset demand for money.
C. transactions demand for money.
D. speculative demand for money.
Answer: B
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If a public good is financed through Lindahl prices, those whose total willingness to pay for the public good is high will end up paying a higher Lindahl price than those whose total willingness to pay for the public good is low.
Answer the following statement true (T) or false (F)
Goals have many attributes, which of the following is not a main characteristic or attribute?
a. Intensity b. Complexity c. Priority d. Procrastination
Albert Einstein once made the following observation about science:
a. "The whole of science is nothing more than the refinement of everyday thinking." b. "The whole of science is nothing more than an interesting intellectual exercise." c. "In order to understand science, one must rely solely on abstraction." d. "In order to understand science, one must transcend everyday thinking."
Which economic principle states that when the price of a good is reduced, the quantity of that good demanded will increase?
a. the law of consumer choice b. the law of consumer equilibrium c. the law of demand d. the law of diminishing marginal utility